Kerala government demands amount for disbursal of salary and pension
The policies of the Union government would hit the tax collection of the state government.
Kochi: The state government has sent an urgent request to the Reserve Bank of India seeking currency notes to the tune of Rs 1,200 crore for the smooth functioning of the state treasury ahead of the disbursal of salary and pension payments for November. Finance Minister T.M. Thomas Isaac told reporters here on Tuesday that additional chief secretary (finance) K.M. Abraham had sent the message to the RBI.
The salary and pension payments to government employees and retired employees were due on November 29 and the state government wanted the facility for them to withdraw the entire amount. “The amount needed for the disbursal of salary and pensions should be given as currency to the state treasury,” Dr Isaac said.
The Union government is issuing fresh orders every day in connection with demonetisation, he said and pointed out that this showed the government’s lack of vision and clarity in this regard. On the new rule allowing 50 per cent of the black money to be legalised by paying 50 per cent income tax, Dr. Isaac said the state government would initiate steps to recover VAT and other taxes due to the state government in proportion to the disclosed amount.
It was also mulling the possibility of permitting the cheques of cooperative banks for making payments to government organisations and hospitals. If the cooperative banks enter into an understanding with the private companies, the same facility can be extended to them also, he added. The policies of the Union government would hit the tax collection of the state government. The government was now focusing on recovering the tax arrears, he added.